Micron Technology, Inc. (NASDAQ:MU) competes against South Korean chipmaker SK Hynix in the computer memory arena. Yesterday, SK Hynix posted record profits in the second quarter of the year on strong demand for memory chips, which bodes well for Micron and the semiconductor sector as a whole.

In reaction, Mizuho’s top analyst Vijay Rakesh reiterates a Buy rating on Micron shares, with a price target of $38, which implies an upside of 25% from current levels.

Rakesh commented, “Underlying supply/demand trends in NAND and DRAM are still strong heading into the iPhone 8 launch and holiday season. Given the WDC-Toshiba tussle, there could be some tightness in NAND supply in 2H17 as well. Our $38 PT on MU is a conservative ~6.0x our F18E EPS. MU trades at ~5x F18E consensus EPS and is the cheapest global memory supplier. MU we believe is also successfully transitioning to its 16nm DRAM and 64-layer stacked 3D-NAND, which should be a tailwind in the current AugQ. We believe against a backdrop of strong fundamentals MU presents an attractive investment opportunity.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Vijay Rakesh has a yearly average return of 30% and a 74% success rate. Rakesh has a 51% average return when recommending MU, and is ranked #31 out of 4608 analysts.

Out of the 20 analysts polled in the past 3 months, 17 rate Micron stock a Buy, 2 rate the stock a Hold, while only 1 recommends a Sell. With a return potential of 32.5%, the stock’s consensus target price stands at $40.29.